Digital News Report – The Greek fiscal crisis continues to push up the dollar. Chinese policy makers have decided to allow the yuan to appreciate while the country may post its first trade deficit in six years. The country has seen a surge in imports making it tougher for the US to complain about their undervalued currency.
The dollar was up 0.3% compared to the euro reaching $1.3304. The dollar also rose .3 percent against the Yen to ¥93.08. It also gained against the U.K. pound to $1.5195.
The yen has fallen 5% against the Dollar over the last month. The currency hit a record high last November but has been declining since then. According to the Forex Blog this could be seasonal. Also the Japanese corporations stopped “their annual repatriation of foreign profits by converting them into yen” which usually kept the currency high.
The Euro is suffering because of higher Greek bond yields. Greece is in the midst of a huge debt crisis.
By: Tina Brown